Article by Stacey Varsani
Founder and Principal Consultant of Hadouken Consulting
Consumers today are increasingly conscious of environmental issues and try to make responsible choices when purchasing products or services. However, this has led to a rise in "greenwashing," where companies make misleading claims about the environmental benefits of their products or practices to appeal to consumers and investors. This can be anything from an unsupported claim of a product being “eco-friendly” to a company inventing and advertising its own environmental certifications.
These tactics not only deceive consumers but can also set back genuine ESG initiatives. However, investors and regulatory bodies are increasingly aware of these practices and are cracking down on misleading marketing and demanding genuine sustainable solutions. For example, MasterChef Australia’s ‘greener’ gas claims spark ACCC investigation | News | Campaign Asia, MOO yogurt (tubs claimed to be made from ‘100% ocean plastic’) and Clorox (Glad garbage bags claimed to be made from ‘50% ocean plastic’).
What can we do about greenwashing? Firstly, education of consumers and businesses is essential. Consumers need to be made aware of the practice of greenwashing and know what to look out for when assessing sustainability claims. Businesses need to understand what they can do to launch verifiable ESG initiatives that will satisfy the demands of consumers, investors and employees, who are all increasingly prioritising sustainability in their decision-making processes.
The Testing, Inspection and Certification (TIC) industry plays a pivotal role in this process by providing independent verification of sustainability claims throughout entire supply chains. Third party certifications provide assurance to stakeholders that companies are adhering to their stated environmental practices.
As greenwashing becomes a more prominent issue, it is vital for consumers, businesses, investors and the TIC industry to work together to ensure accountability, transparency and traceability. By prioritizing education, demanding accountability and supporting independent verification, we can create an environment where authentic sustainability thrives.
Hadouken Consulting specializes in helping businesses navigate these challenges with a unique combination of strategy consulting and TIC operations management experience. Rather than offering cookie-cutter solutions, Hadouken embeds within its clients' organizations to solve problems from the inside out and ensure successful implementation of sustainable practices.
If your business wants to lead the charge in genuine sustainability, avoid greenwashing pitfalls, and meet the growing demands of consumers and investors, get in touch with Hadouken Consulting today. Together, we can create a future where authentic sustainability thrives.
Get in touch today to find out more.
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